Volunteer service can be exciting and rewarding. You get to help people in need or tackle environmental issues through worthwhile causes. As a physician, you can join the Red Cross or Peace Corps, or become a mentor to medical school students. Volunteering for some of these qualify for Public Service Loan Forgiveness (PSLF); but others do not.

The confusion likely stems from one of the requirements for federal loan forgiveness, which is to work for a nonprofit. The expectation is for paid fulltime work directly with the U.S. government or at a nonprofit agency.

PSLF requires that you work full-time for a nonprofit organization as defined by the IRS, a tribal organization or a qualifying government agency like the VA, county hospital, or the CDC. Other federal, state or local government organizations also qualify.

Nonprofit institutions must be 501(c)(3) organizations as defined by the IRS. There are around 3,000 non-federal, nonprofit hospitals in the U.S., most of which list their physician job opportunities on PracticeLink.com. Nonprofit does not mean low budget. In fact, they can be highly profitable. In a longstanding trend, some of the most profitable hospitals in America are nonprofit. Additionally, nearly all of the nation’s most prestigious hospitals are nonprofits. 

In addition to meeting the job requirement for loan forgiveness, physicians can also find success, strong communities and a growing focus on wellbeing. For instance, at Banner Health, one of the largest nonprofit hospital systems in the country with locations in California, Arizona, Colorado and other states, they value diversity, include wellness services in their benefits package and they’re an integral part of each community they serve.

LifePoint Hospital, another nonprofit, multistate health system, strongly emphasizes physician growth through collaboration, resources, technology and support.

Keep in mind that working locum tenens, even if full time, may not qualify. Physicians must be full time employees of the organization that pays their salary. Even employees at national research labs may not qualify if the managing entity of the lab is not a qualifying employer.

Making a mistake could cost you in immeasurable ways, not the least of which is the investment of your time and hopes of working toward loan forgiveness, only to find out that you haven’t met all of the requirements. To help avoid mistakes, talk earnestly with your physician recruiter and a certified loan counselor.

Physician recruiters at nonprofit hospitals tend to be well-versed in student loans and the need for loan forgiveness. Lori Leo, a physician recruiter at University of Pittsburgh Medical Center (UPMC), a world-renowned nonprofit hospital in Pennsylvania, advises that during the interview process, candidates should “still confirm the nonprofit status of the healthcare organization.” 

UPMC takes the pressure off by making it a service for new employees. Lori explains, “Once hired, new employees are partnered with the benefits team, which completes the PSLF paperwork for them.”

Loan counselors review your budget, evaluate your debt and create a debt payoff strategy. Taking that a step further, student loan counselors take into consideration the labyrinth of parameters for student loans and state or federal programs. Take control of your student loans with lifetime support from Navigate Student Loans. There are no hidden fees or ongoing costs. You can book a consultation for free to see how you can save on your student loan payments at https://navigatestudentloans.com/ or attend Navigate’s free 15-minute discovery session through PracticeLink at https://navigate.as.me/PracticeLink.